Regal Rexnord Corporation · NYSE:RRX
Regal Rexnord — Q2 2025 Earnings Presentation
29 slides from Regal Rexnord's earnings presentation, Aug 6, 2025
Slide 1: Second Quarter 2025 Earnings
Creating a better tomorrow™… Second Quarter 2025 Earnings August 6, 2025 Moti Louis Pinkham, Chief Executive Officer on Co Indus Rob Rehard, Executive Vice President, Chief Financial Officer ntrol trial S Solut ystem ions s
Slide 2: 2Q 2025 Forward Looking Statements and Non-GAAP Financial Measures
2Q 2025 FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as “anticipate,” “believe,” “con
Slide 3: Opening Comments & Overview
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 2Q 2025 Results, 2025 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus Closing Remarks ntrol trial S LOUIS PINKHAM, CEO Solut ystem ions s
Slide 4: 2Q 2025 Performance
2Q 2025 2Q PERFORMANCE • Sales Down 1.2% On An Organic Basis*, In Line With Expectations o Large Project Timing Headwinds In Metals & Mining, Net Sales* + Adjusted EBITDA* Temporary Rare Earth Magnet Availability & Margin*+ o Strength In Residential & Commercial HVAC, Aerospace $1,505.2 $1,496.1 $33
Slide 5: Cross-Sell Synergy Update
2Q 2025 CROSS-SELL SYNERGY UPDATE Creating a better tomorrow™… ©2025 Regal Rexnord Corporation, Proprietary and Confidential
Slide 6: 2Q 2025 Results, 2025 Outlook
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 2Q 2025 Results, 2025 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus Closing Remarks ntrol trial S LOUIS PINKHAM, CEO Solut ystem ions s
Slide 7: Automation & Motion Control
2Q 2025 AUTOMATION & MOTION CONTROL Sales Net Sales ($M) Adjusted EBITDA ($M) & Margin • Net Sales Down 2.6% • Organic Sales Down 3.4% $422.2 $411.1 $94.9 • Key Drivers o Medical (-) $80.2 o Data Center Project Timing (-) o Temporary Rare Earth Magnet Availability (-) o Aerospace (+) 22.5% 19.5% 2Q2
Slide 8: Industrial Powertrain Solutions
2Q 2025 INDUSTRIAL POWERTRAIN SOLUTIONS Sales Net Sales ($M) Adjusted EBITDA • Net Sales Down 3.8% ($M) & Margin • Organic Sales Down 4.4% $675.5 $649.8 • Key Drivers $174.4 $175.1 o Metals & Mining (-) $53. $235.2 5 $43. 4 25.8% 26.9% 2Q24 2Q25 2Q24 2Q25 Healthy 2Q Margin Performance; Backlog Up 15
Slide 9: Power Efficiency Solutions
2Q 2025 POWER EFFICIENCY SOLUTIONS Sales Net Sales ($M) Adjusted EBITDA • Net Sales Up 5.9% ($M) & Margin • Organic Sales Up 6.5% $435.2 $410.9 • Key Drivers $165. o R-HVAC (+) 5 $39.0 o C-HVAC (+) $135. $74.4 7 $66.0 $21.3 16.1% 17.1% 2Q24 2Q25 2Q24 2Q25 $189.8 Strong Growth & Improved Profitabilit
Slide 10: Accounts Receivable Securitization Facility
2Q 2025 ACCOUNTS RECEIVABLE SECURITIZATION FACILITY + + + • In 2Q, we closed on a $400 million accounts receivable Leverage Ratio History* securitization facility that matures in 2026, with an annual renewal option. Initial proceeds of $368.5 million were used to repay bank debt. 3.63 * 3.62 * 3.34*
Slide 11: 2025 Outlook - Enterprise Guidance
2Q 2025 2025 OUTLOOK - ENTERPRISE GUIDANCE • Re-Affirming 2025 Adjusted EPS Guidance Mid-Point And Narrowing Adjusted EPS Guidance Range • Sales Guide Rising On FX And Tariff Pricing Impacts • Adj. EBITDA Margin Guide Down ~50bps Vs. Prior On Larger FX Headwinds, Tariffs, And Lower AMC Margins (Rare
Slide 12: Tariff Impacts
2Q 2025 TARIFF IMPACTS Mitigation Actions • Supply Chain Realignments • Production Relocations • Productivity Measures • Pricing Actions Other Considerations • Approximately 95% Of Imports From Mexico & Canada Are USMCA Compliant • Dual Country Sourced On Most China Imports • Flexible Global Manufac
Slide 13: 3Q & FY 2025 Outlook - Segment Detail
2Q 2025 3Q & FY 2025 OUTLOOK - SEGMENT DETAIL Creating a better tomorrow™… 13 ©2025 Regal Rexnord Corporation, Proprietary and Confidential
Slide 14: Closing Remarks
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 2Q 2025 Results, 2025 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus Closing Remarks ntrol trial S LOUIS PINKHAM, CEO Solut ystem ions s
Slide 15: Questions & Answers
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 2Q 2025 Results, 2025 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus Closing Remarks ntrol trial S LOUIS PINKHAM, CEO Solut ystem ions s
Slide 16: Securitization Facility Modeling Considerations
2Q 2025 APPENDIX - SECURITIZATION FACILITY MODELING CONSIDERATIONS • Net Interest Guidance of $326 million includes Interest Expense of $336 million, Interest Income of $18 million, and charges related to Securitization Facility of $8 million. • Per accounting rules, monthly charges associated with
Slide 17: Adjusted Diluted Earnings Per Share
2Q 2025 APPENDIX ADJUSTED DILUTED EARNINGS PER SHARE Unaudited Three Months Ended Six Months Ended Jun 30, Jun 30, Jun 30, Jun 30, 2025 2024 2025 2024 GAAP Diluted Earnings Per Share $ 1.19 $ 0.94 $ 2.05 $ 1.23 Intangible Amortization 0.99 0.98 1.96 1.96 Share-Based Compensation Expense 0.13 0.12 0.
Slide 18: 2025 Adjusted Annual Guidance
2Q 2025 APPENDIX 2025 ADJUSTED ANNUAL GUIDANCE Unaudited Minimum Maximum GAAP Diluted (Loss) Earnings Per Share $ 4.50 $ 5.10 Intangible Amortization 3.90 3.90 (a) Restructuring and Related Costs 0.58 0.58 Share-Based Compensation Expense 0.51 0.51 Transaction and Integration Related Costs (b) 0.30
Slide 19: 2025 Net Income to Adjusted EBITDA Annual Guidance
2Q 2025 APPENDIX 2025 NET INCOME TO ADJUSTED EBITDA ANNUAL GUIDANCE Unaudited (Dollars in Millions) Minimum Maximum Net Income $ 300.5 $ 340.4 Plus: Income Taxes 81.7 92.8 Plus: Interest Expense 336.1 336.1 Less: Interest Income (18.3) (18.3) Plus: Depreciation 151.0 151.0 Plus: Amortization 343.7 3
Slide 20: Organic Sales Growth
2Q 2025 APPENDIX ORGANIC SALES GROWTH Unaudited (Dollars in Millions) Three Months Ended Industrial Power and Automation & Powertrain Efficiency Industrial Total Regal Motion Control Solutions Solutions Systems Rexnord Net Sales Three Months Ended Jun 30, 2025 $ 411.1 $ 649.8 $ 435.2 $ — $ 1,496.1 I
Slide 21: Organic Sales Growth
2Q 2025 APPENDIX ORGANIC SALES GROWTH Unaudited (Dollars in Millions) Six Months Ended Industrial Power and Automation & Powertrain Efficiency Industrial Total Regal Motion Control Solutions Solutions Systems Rexnord Net Sales Six Months Ended Jun 30, 2025 $ 807.4 $ 1,262.5 $ 844.3 $ — $ 2,914.2 Imp
Slide 22: Adjusted EBITDA
2Q 2025 APPENDIX ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Automation & Motion Industrial Powertrain Power and Efficiency Control Solutions Solutions Industrial Systems Total Regal Rexnord Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, 2025 2
Slide 23: Adjusted EBITDA
2Q 2025 APPENDIX ADJUSTED EBITDA Unaudited (Dollars in Millions) Six Months Ended Industrial Powertrain Power and Efficiency Automation & Motion Control Solutions Solutions Industrial Systems Total Regal Rexnord Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 20
Slide 24: Adjusted Gross Margin
2Q 2025 APPENDIX ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Three Months Ended Industrial Automation & Powertrain Power and Total Regal Motion Control Solutions Efficiency Solutions Industrial Systems Rexnord Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30,
Slide 25: Adjusted Gross Margin
2Q 2025 APPENDIX ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Six Months Ended Industrial Automation & Powertrain Power and Total Regal Motion Control Solutions Efficiency Solutions Industrial Systems Rexnord Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, 20
Slide 26: Net Income to Adjusted EBITDA
2Q 2025 APPENDIX NET INCOME TO ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Six Months Ended Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Net Income $ 79.6 $ 63.0 $ 137.1 $ 83.4 Plus: Income Taxes 21.6 33.9 37.1 44.8 Plus: Interest Expense 85.3 101.7 175.5 207.1 Less: In
Slide 27: Adjusted Effective Tax Rate
2Q 2025 APPENDIX ADJUSTED EFFECTIVE TAX RATE * Unaudited (Dollars in Millions) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Income before Taxes $ 101.2 $ 96.9 $ 174.2 $ 128.2 Provision for Income Taxes 21.6 33.9 37.1 44.8 Effective Tax Rate 21.3 % 35.0
Slide 28: Adjusted Free Cash Flow
2Q 2025 APPENDIX ADJUSTED FREE CASH FLOW Unaudited (Dollars in Millions) Three Months Ended Six Months Ended Jun 30, Jun 30, Jun 30, Jun 30, 2025 2024 2025 2024 Net Cash Provided by Operating Activities 523.2 158.3 625.5 241.4 Payments for Certain Costs to Sell Businesses (Net of Tax of $1.7 Million
Slide 29: Debt to EBITDA
2Q 2025 APPENDIX DEBT TO EBITDA * Unaudited (Dollars in Millions) Last Twelve Months Jun 30, 2025 Net Income $ 252.1 (a) Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset Plus: Income Taxes 41.9 charg